GRAND DYNAMIC BUILDERS SDN. BHD. DAMAI CITY SDN. BHD.

GRAND DYNAMIC BUILDERS SDN. BHD. DAMAI CITY SDN. BHD.

The court held the adjudication decision was valid despite being delivered after 45 working days because DCSB caused lawful suspension of proceedings via restraining orders and judicial management filings under Companies Act ss 368 and 410 which tolled the adjudication timeline and prevented continuation without court leave; the adjudicator acted within statutory powers (including rejecting a rejoinder) and properly dealt with issues including Interim Certificate No.24, hence there were no special circumstances or clear errors to set aside or stay the adjudication decision.

Citation
WA-24C-143-09/2024 (Mahkamah Tinggi)
Parties
Plaintiff (os139) / Defendant (os143): Damai City Sdn Bhd; Plaintiff (os143) / Defendant (os139): Grand Dynamic Builders Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
21 April 2025
Case Number
WA-24C-143-09/2024 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Challenging and Enforcing CIPAA Adjudication Decision / Judgment on Originating Summonses (setting Aside, Stay and Enforcement)
Outcome
Dismissed: Enclosure 1 and Enclosure 11 in Originating Summons No. WA-24C-139-09/2024; Adjudication Decision dated 20.8.2024 upheld and enforcement/order in terms granted in Originating Summons No. WA-24C-143-09/2024.
Legal Topics
CIPAA Adjudication Timelines and Enforcement, Restraining Orders and Judicial Management Moratoriums, Interim Payment Certificates, Natural Justice and Procedure (rejoinder), Res Judicata, Stay Pending Arbitration
Source Language
Malay/English
Construction Law Adjudication and Arbitration Law Company Law Contract Law CIPAA Adjudication Timelines and Enforcement Restraining Orders and Judicial Management Moratoriums Interim Payment Certificates Natural Justice and Procedure (rejoinder) +2 more

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Parties

Damai City Sdn Bhd

Plaintiff (os139) / Defendant (os143)

Grand Dynamic Builders Sdn Bhd

Plaintiff (os143) / Defendant (os139)

Procedural Posture

Originating Summons Challenging and Enforcing CIPAA Adjudication Decision / Judgment on Originating Summonses (setting Aside, Stay and Enforcement)

Legal Issues

  1. 1 Whether the adjudication decision delivered beyond 45 working days was void under section 12(3) CIPAA
  2. 2 Whether restraining orders and judicial management applications under Companies Act 2016 (ss 368 and 410) suspended or tolled CIPAA timelines
  3. 3 Whether Interim Certificate No.24 was payable/matured

Ratio Decidendi

The court held the adjudication decision was valid despite being delivered after 45 working days because DCSB caused lawful suspension of proceedings via restraining orders and judicial management filings under Companies Act ss 368 and 410 which tolled the adjudication timeline and prevented continuation without court leave; the adjudicator acted within statutory powers (including rejecting a rejoinder) and properly dealt with issues including Interim Certificate No.24, hence there were no special circumstances or clear errors to set aside or stay the adjudication decision.

Court Disposition

Dismissed: Enclosure 1 and Enclosure 11 in Originating Summons No. WA-24C-139-09/2024; Adjudication Decision dated 20.8.2024 upheld and enforcement/order in terms granted in Originating Summons No. WA-24C-143-09/2024.

Orders

  • Dismiss Enclosure 1 in OS No. WA-24C-139-09/2024 with costs.
  • Dismiss Enclosure 11 in OS No. WA-24C-139-09/2024 with costs.